On Monday Sept. 19, 2011, President Obama released his deficit reduction plan. Contained in the proposal is a provision that would allow collectors to call consumers on their cell phone in an attempt to collect federal debt.
Currently, the Telephone Consumer Protection Act (TCPA) prohibits any person from calling a consumer on his or her cell phone unless the consumer has given prior express consent or the call is for emergency purposes.
The President’s proposal would allow collectors pursuing a government-backed debt, including most mortgages, unpaid taxes, and federal loans, to contact consumers via cellular phone, in an effort to secure the debt. On Page 28 of The President’s Plan for Economic Growth and Deficit Reduction, the proposal states:
Allow agencies to contact delinquent debtors via their cellular phones. The Administration also proposes to amend the Communications Act of 1934 to facilitate collection of debts owed to or guaranteed by the Federal Government, by facilitating contact of delinquent debtors who are most readily reached on their cell phones. This provision is expected to provide substantial increases in collections, particularly as an increasing share of households no longer have landlines and rely instead on cell phones.
This provision is expected to provide substantial increases in collections, particularly as an increasing number of households no longer have landlines and rely solely on cell phones. The goal of the rule is to increase revenue for the federal government, by contacting more people who otherwise would not be reached.
The prohibition on calling cell phones has been a cause of concern for the debt collection industry. The proposal may be a step in the right direction.